When you purchase a newly constructed home in Australia, you’re not just investing in a property, but also in the peace of mind that comes with builder’s warranties. A builder’s warranty, also known as a structural or home warranty, is a crucial aspect of your investment. It serves to protect homeowners against defects in the construction of their home.
What is a Builder’s Warranty?
A builder’s warranty is a legally mandated insurance policy that builders must provide to the homeowners. This warranty is required by Australian law and is designed to cover the costs of repairing or replacing faulty workmanship and materials in new homes and major renovations.
Key Coverage Details
- Duration: In Australia, the duration of a builder’s warranty is typically six years for structural defects and two years for non-structural defects from the date of completion. The specific terms can vary slightly between different states and territories.
- Structural Defects: Structural defects include issues that compromise the integrity and safety of the property, such as faulty foundation, walls, and roofs. The warranty covers the cost of repairs needed to bring the structure up to standards.
- Non-structural Defects: For non-structural defects, which include problems like plumbing, electrical faults, and finishing defects, coverage lasts for two years. This ensures that the smaller, yet important aspects of your home are also protected under the warranty.
Importance of Understanding Your Warranty
Understanding the terms of your builder’s warranty is essential. It ensures you are aware of what is covered and for how long, enabling you to address any issues within the warranty period effectively. Homeowners are advised to thoroughly review their warranty documents and keep them for reference throughout the warranty period.
By ensuring these protections are in place, a builder’s warranty not only enhances your confidence in the quality of your newly built home but also safeguards your investment against unforeseen defects.
